Soft Drinks in Peru

(1)

SOFT DRINKS IN PERU

Euromonitor International

(2)

LIST OF CONTENTS AND TABLES

Executive Summary ... 1

Consumption of Healthy Beverages Increases in Peru ... 1

Launch of Smaller Formats To Face Economy Deceleration ... 1

Cbc and AmBev Sign Joint Venture To Manage Activities in Peru ... 1

New Product Developments Focus on Functional and Healthier Beverages ... 1

Healthier Beverages Will Lead Growth in the Future ... 1

Key Trends and Developments ... 1

Awareness of Healthy Beverages Continues in Peru ... 2

How Companies Face the Economic Deceleration in the Industry ... 2

Local Brands Show Leadership in Carbonates ... 2

Market Data ... 3

Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2010-2015 ... 3

Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2010-2015 ... 3

Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2010-2015 ... 3

Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2010-2015 ... 4

Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2015 ... 4

Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2015 ... 4

Table 7 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2015 ... 5

Table 8 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2015... 5

Table 9 Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2010-2015 ... 5

Table 10 Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2010-2015 ... 6

Table 11 Off-trade Sales of Soft Drinks by Category: Value 2010-2015 ... 6

Table 12 Off-trade Sales of Soft Drinks by Category: % Value Growth 2010-2015 ... 6

Table 13 Total Sales of Soft Drinks by Fountain On-trade: Volume 2010-2015 ... 6

Table 14 Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2010-2015 ... 7

Table 15 NBO Company Shares of Off-trade Soft Drinks (as sold): % Volume 2011-2015 ... 7

Table 16 LBN Brand Shares of Off-trade Soft Drinks (as sold): % Volume 2012-2015 ... 7

Table 17 NBO Company Shares of Off-trade Soft Drinks (RTD): % Volume 2011-2015 ... 9

Table 18 LBN Brand Shares of Off-trade Soft Drinks (RTD): % Volume 2012-2015 ... 9

Table 19 NBO Company Shares of Off-trade Soft Drinks: % Value 2011-2015 ... 11

Table 20 LBN Brand Shares of Off-trade Soft Drinks: % Value 2012-2015 ... 11

Table 21 Distribution of Off-trade Soft Drinks (as sold) by Format and Category: % Volume 2015 ... 12

(3)

Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by

Channel: Volume 2015-2020 ... 13

Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2015-2020 ... 14

Table 24 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2015-2020 ... 14

Table 25 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2015-2020 ... 14

Table 26 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2015-2020 ... 14

Table 27 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2015-2020 ... 15

Table 28 Forecast Off-trade Sales of Soft Drinks by Category: Value 2015-2020 ... 15

Table 29 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 2015-2020 ... 15

Table 30 Forecast Total Sales of Soft Drinks by Fountain On-trade: Volume 2015-2020 ... 16

Table 31 Forecast Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2015-2020 ... 16

Appendix ... 16

Fountain Sales in Peru ... 16

Definitions ... 16

Sources ... 17

(4)

SOFT DRINKS IN PERU

EXECUTIVE SUMMARY

Consumption of Healthy Beverages Increases in Peru

In 2015 Peruvian consumers were evidently choosing healthier beverages, as the consumption of regular carbonates was decreasing compared to the consumption of other options such as bottled water and juice. Peruvian consumers want to take care of their health and overall wellness through better choices of food and drinks.

Launch of Smaller Formats To Face Economy Deceleration

Due to the deceleration of the Peruvian economy and the decrease in demand for regular carbonate beverages, companies launched smaller formats in 2015. These smaller formats allow consumers that are concerned about their health to indulge themselves with carbonated beverages from time to time in small doses and also allow consumers that have budget concerns to drink carbonates at an affordable price.

Cbc and AmBev Sign Joint Venture To Manage Activities in Peru

The Central American company CBC and the Brazilian AmBev have signed a joint venture for the management of their business activities in Peru. CBC will handle the soft drinks operations and AmBev the beer business in Peru. It should be noted that PepsiCo Inc selected Cia Cervecera Ambev Perú (AmBev) to be in charge of brands such as Pepsi, 7-Up, Evervess, Lipton Ice Tea, San Carlos, Concordia, Triple Kola and Gatorade.

New Product Developments Focus on Functional and Healthier

Beverages

In 2015, launches in the soft drink industry were focused on functional and healthy beverages. Even though carbonated beverages appeared on the market, the launches of functional

beverages such as Frugos Nutri Defensas in the juice category or Cielo Q10, bottled water enriched with the coenzyme Q10, are the ones that captivated consumers. In the last trimester of 2014 Corp Lindley launched La Moradita de Inca Kola, a carbonated beverage flavoured with chicha morada, but unfortunately consumers did not take to the beverage and the company withdrew it from the market six months afterward.

Healthier Beverages Will Lead Growth in the Future

Bottled water, RTD tea, juices and sports drinks are expected to see the fastest growth over the 2015-2020 forecast period due to the preference of Peruvian consumers for healthier beverages. On the other hand, growth of carbonates in the forecast period is going to be limited, and consumers are expected to favour the low-calorie options despite there still being no offer of beverages sweetened with natural ingredients.

(5)

Awareness of Healthy Beverages Continues in Peru

The concern of Peruvians for healthy food and beverages is a strong trend and it drives the growth of categories such as bottled water, juices, RTD tea and sports drinks. The high content of sugar of carbonates and their negative impact on health lead consumers to choose healthier beverage options, therefore the growth of carbonates is losing strength over time.

Due to the Peruvian government’s concern about the high rate of overweight children it strengthened the law against junk food at schools and is further enforcing the law on companies regarding the correct communication of ingredients of food and beverages, especially to young people. The Ministry of Health promotes healthy eating habits in different campaigns and local municipalities encourage people to practice sports and do more physical activities in order to avoid diseases related to bad eating habits and a sedentary lifestyle.

Outlook

The industry aligns its offers with consumer demand; the launch of healthier beverage options is the companies’ response to the growing concern about health and wellness, the high

consumption of sugar that can lead to diabetes, obesity and other health problems.

How Companies Face the Economic Deceleration in the Industry

Peru’s economic deceleration started within the last two years of the 2010-2015 review period due to a decrease in mining production along with low prices and economic crisis in other parts of the world that led Peruvian exports to decrease. This caused a drop in the GDP. Slower Peruvian GDP growth causes internal consumption to stagnate, which makes companies even more concerned about increasing their market share and sales within the industry.

The industry reaction to the Peruvian deceleration has been quick, resulting in the launch of smaller formats in carbonates that allow consumers to keep up with their consumption habits but also create more moments to enjoy the carbonated beverages. Companies are promoting the use of family-size returnable glass bottles instead of plastic disposable ones in order to cheapen costs and reuse the bottles but it is also a way to bring consumers their beverages at the right price.

Outlook

The Peruvian market is expected to keep growing despite the economic deceleration, basically because more individuals are leaving poverty levels to become part of the growing middle class but also due to the fast expansion of retailing channels all over the country. The penetration rate of modern retailers is still low compared to other countries in the region and this will maintain consumption rates high in the next 5-10 years.

Companies need to keep up with their product development and marketing efforts in order to increase their market shares. The launch of healthier beverage options as well as formats will be determined by consumer demand.

Local Brands Show Leadership in Carbonates

The leadership of Coca-Cola around the world is undeniable, and this phenomenon is experienced also in Latin America; however, Peru’s second-ranked carbonate beverage is still the local brand Inca Kola. In 2015 Inca Kola celebrated its 80 years in the market; the beverage was launched by Corp Lindley, a Peruvian company with over 100 years of activities and one of the most important business groups in the country. In 1999 Corp Lindley signed a joint venture with Coca-Cola Company, which is now the GBO of Inca Kola, and from that moment the brand Inca Kola has generally flourished.

(6)

The success of Inca Kola is the use of the target audience’s identity, making the brand a symbol of Peru but also creating marketing campaigns that are associated with positive aspects of Peru, such as family values in the 1980s, typical Peruvian food in the 1990s and appealing to the Peruvian creativity in the early 2000s; the latest campaigns strive to be more interactive with consumers through social media.

Outlook

Peruvians are experiencing a time of appreciation for the Peruvian culture: the food, the history, the places to visit and also the beverages. Inca Kola is one example of how Peruvians’ consumption patterns are changing from preferring imported products for their high quality and brand association to preferring Peruvian products for their flavour, identity connotation and history. Chicha morada, a natural beverage made from the boiling of Peruvian purple corn is another example of this trend, even though the chicha morada (flavoured) beverage Corp Lindley introduced in 2014 did not appeal to consumers and was withdrawn only months later.

In the future, new product developments will include not only natural products, but functional products that may have been part of the Peruvian culture and history. This will only occur through the initiative of well-established companies with wide coverage on supermarket shelves so consumers can have more options in the beverage aisles.

MARKET DATA

Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2010-2015 million litres 2010 2011 2012 2013 2014 2015 Off-trade 2,149.1 2,310.1 2,429.4 2,416.5 2,476.1 2,616.7 On-trade 299.6 315.2 337.2 352.2 360.8 373.1 Total 2,448.6 2,625.4 2,766.6 2,768.7 2,836.8 2,989.8

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Note: Excludes powder concentrates

Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2010-2015 % volume growth 2014/15 2010-15 CAGR 2010/15 TOTAL Off-trade 5.7 4.0 21.8 On-trade 3.4 4.5 24.5 Total 5.4 4.1 22.1

Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2010-2015

PEN million

(7)

Off-trade 4,988.9 5,402.3 5,752.6 5,948.4 6,268.6 6,721.1

On-trade 2,371.2 2,556.0 2,801.2 3,020.1 3,159.9 3,337.2

Total 7,360.1 7,958.3 8,553.8 8,968.6 9,428.4 10,058.3

Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2010-2015

% constant value growth

2014/15 2010-15 CAGR 2010/15 TOTAL

Off-trade 7.2 6.1 34.7

On-trade 5.6 7.1 40.7

Total 6.7 6.4 36.7

Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2015

million litres

Off-trade On-trade TOTAL

Bottled Water 598.8 55.8 654.6 Carbonates 1,443.7 306.1 1,749.8 Concentrates - - - Juice 353.4 10.3 363.7 RTD Coffee 0.0 - 0.0 RTD Tea 68.1 - 68.1

Sports and Energy Drinks 152.8 0.9 153.6

Asian Speciality Drinks - - -

Soft Drinks 2,616.7 373.1 2,989.8

Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2015

% volume analysis

Off-trade On-trade Total

Bottled Water 91.5 8.5 100.0 Carbonates 82.5 17.5 100.0 Concentrates - - - Juice 97.2 2.8 100.0 RTD Coffee 100.0 - 100.0 RTD Tea 100.0 - 100.0 Soft Drinks 87.5 12.5 100.0

(8)

Table 7 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2015

PEN million

Off-trade On-trade TOTAL

Bottled Water 1,139.8 248.3 1,388.1 Carbonates 3,352.1 2,885.6 6,237.6 Concentrates 80.5 - 80.5 Juice 903.5 134.6 1,038.2 RTD Coffee 0.4 - 0.4 RTD Tea 366.8 - 366.8

Soft Drinks 6,721.1 3,337.2 10,058.3

Table 8 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2015

% value analysis

Off-trade On-trade Total

Bottled Water 82.1 17.9 100.0 Carbonates 53.7 46.3 100.0 Concentrates 100.0 - 100.0 Juice 87.0 13.0 100.0 RTD Coffee 100.0 - 100.0 RTD Tea 100.0 - 100.0 Soft Drinks 66.8 33.2 100.0

Table 9 Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2010-2015

million litres 2010 2011 2012 2013 2014 2015 Bottled Water 305.5 375.6 494.5 506.7 537.6 598.8 Carbonates 1,441.1 1,476.2 1,428.4 1,396.4 1,405.7 1,443.7 Concentrates - - - - Juice 298.4 325.8 351.4 337.2 336.9 353.4 RTD Coffee - - - 0.0 0.0 0.0 RTD Tea 26.3 32.9 42.1 50.1 57.8 68.1

Sports and Energy Drinks 77.6 99.6 113.0 126.0 138.2 152.8

Asian Speciality Drinks - - - -

Soft Drinks 2,149.1 2,310.1 2,429.4 2,416.5 2,476.1 2,616.7

(9)

Table 10 Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2010-2015 % volume growth 2014/15 2010-15 CAGR 2010/15 Total Bottled Water 11.4 14.4 96.0 Carbonates 2.7 0.0 0.2 Concentrates - - - Juice 4.9 3.4 18.4 RTD Coffee 7.1 - - RTD Tea 17.8 20.9 158.4

Soft Drinks 5.7 4.0 21.8

Table 11 Off-trade Sales of Soft Drinks by Category: Value 2010-2015

PEN million 2010 2011 2012 2013 2014 2015 Bottled Water 533.2 665.0 892.0 924.1 1,002.5 1,139.8 Carbonates 3,079.9 3,165.7 3,100.2 3,129.4 3,232.3 3,352.1 Concentrates 79.4 79.1 79.4 79.1 79.3 80.5 Juice 718.6 759.3 831.2 846.1 864.1 903.5 RTD Coffee - - - 0.3 0.3 0.4 RTD Tea 136.8 170.9 213.5 260.7 309.8 366.8

Soft Drinks 4,988.9 5,402.3 5,752.6 5,948.4 6,268.6 6,721.1

Table 12 Off-trade Sales of Soft Drinks by Category: % Value Growth 2010-2015

% current value growth

2014/15 2010-15 CAGR 2010/15 Total Bottled Water 13.7 16.4 113.8 Carbonates 3.7 1.7 8.8 Concentrates 1.5 0.3 1.4 Juice 4.6 4.7 25.7 RTD Coffee 9.9 - - RTD Tea 18.4 21.8 168.2

(10)

million litres

2010 2011 2012 2013 2014 2015

Total Fountain On-trade 12.6 13.2 13.8 14.6 15.4 16.2

Table 14 Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2010-2015

% fountain volume growth

2014/15 2010-15 CAGR 2010/15 TOTAL

Total Fountain On-trade 5.6 5.1 28.5

Table 15 NBO Company Shares of Off-trade Soft Drinks (as sold): % Volume 2011-2015

% off-trade volume

Company 2011 2012 2013 2014 2015

Corp Lindley SA 50.1 48.9 48.9 48.9 48.3

Ajeper SA 24.0 25.3 25.5 25.7 26.3

Cia Cervecera Ambev 10.2 9.5 9.5 9.3 9.2

Perú SAC

Gloria SA, Grupo 2.8 2.9 2.7 2.8 2.9

Embotelladora Don Jorge 2.3 2.2 2.4 2.4 2.4

SA

Coca-Cola Co, The - 0.0 0.0 0.0 1.9

Laive SA 0.3 0.3 0.3 0.3 0.3

Industrias San Miguel 0.3 0.3 0.3 0.3 0.3

Unión de Cervecerías 2.3 2.3 2.2 2.2 0.3

Peruanas Backus & Johnston SAA

La Cosecha Peruana SAC 0.3 0.2 0.2 0.2 0.2

Inversiones Rind SAC 0.1 0.2 0.2 0.2 0.2

P&D Andina Alimentos SA 0.1 0.2 0.2 0.2 0.2

Trifarma SA 0.1 0.1 0.1 0.1 0.1

Watt's Perú SA 0.1 0.1 0.1 0.1 0.1

Perufarma SA 0.1 0.1 0.1 0.1 0.1

Embotelladora Demesa SA 0.1 0.1 - - 0.0

Food Pack SAC 0.0 0.0 0.0 0.0 0.0

Consorcio Bander SA 0.0 0.0 - - -

Pepsi-Cola Panamericana 0.1 - - - -

Perú SRL

Corp José R Lindley SA - - - - -

Others 6.7 7.2 7.3 7.1 7.0

Total 100.0 100.0 100.0 100.0 100.0

(11)

% off-trade volume

Brand (GBO) Company (NBO) 2012 2013 2014 2015

Coca-Cola (Coca- Corp Lindley SA 15.5 15.3 15.0 14.7

Cola Co, The)

Inca Kola (Coca- Corp Lindley SA 13.4 13.1 12.9 12.4

Cola Co, The)

Cielo (Aje Group) Ajeper SA 8.0 8.4 8.9 9.5

San Luis (Coca-Cola Corp Lindley SA 7.8 8.2 8.7 9.2

Co, The)

Kola Real (Aje Group) Ajeper SA 7.6 7.4 7.3 7.1

Pepsi (PepsiCo Inc) Cia Cervecera Ambev 4.9 4.7 4.6 4.5

Perú SAC

Cifrut (Aje Group) Ajeper SA 4.4 4.1 3.8 3.8

Inca Kola Light Corp Lindley SA 3.3 3.3 3.2 3.1

(Coca-Cola Co, The)

Sprite (Coca-Cola Corp Lindley SA 2.4 2.3 2.3 2.2

Co, The)

Sporade (Aje Group) Ajeper SA 1.6 1.8 1.9 2.0

Frugos (Coca-Cola Corp Lindley SA 2.0 2.1 2.1 2.0

Co, The)

Gloria Gloria SA, Grupo 2.1 1.8 1.8 1.9

Gatorade (PepsiCo Cia Cervecera Ambev 1.4 1.5 1.6 1.7

Inc) Perú SAC

7-Up (PepsiCo Inc) Cia Cervecera Ambev 1.6 1.5 1.5 1.5

Perú SAC

Powerade (Coca-Cola Corp Lindley SA 1.1 1.2 1.4 1.4

Co, The)

Pulp (Aje Group) Ajeper SA 1.2 1.3 1.3 1.2

Big Cola (Aje Group) Ajeper SA 1.0 1.1 1.1 1.0

Aquarius (Coca-Cola Corp Lindley SA 0.9 0.9 0.9 0.9

Co, The)

Peru Cola Embotelladora Don Jorge SA 0.9 0.9 0.9 0.9

Vida Embotelladora Don Jorge SA 0.5 0.7 0.7 0.8

Isaac Kola Embotelladora Don Jorge SA 0.8 0.8 0.8 0.7

Guaraná Backus Coca-Cola Co, The - - - 0.7

Free Tea (Aje Group) Ajeper SA 0.6 0.6 0.7 0.7

Fanta (Coca-Cola Corp Lindley SA 0.7 0.7 0.7 0.7

Co, The)

San Mateo Coca-Cola Co, The - - - 0.6

Coca-Cola Zero Corp Lindley SA 0.6 0.6 0.6 0.6

(Coca-Cola Co, The)

Fanta Kola Inglesa Corp Lindley SA - 0.5 0.5 0.5

(Coca-Cola Co, The)

Lipton Ice Tea Cia Cervecera Ambev 0.4 0.4 0.5 0.5

(Unilever Group) Perú SAC

Tampico (Houchens Gloria SA, Grupo 0.4 0.4 0.4 0.4

Industries Inc)

Oro (Aje Group) Ajeper SA 0.4 0.4 0.4 0.4

Guaraná Backus Unión de Cervecerías 0.8 0.8 0.8 -

(SABMiller Plc) Peruanas Backus &

Johnston SAA

San Mateo Unión de Cervecerías 0.6 0.6 0.6 -

Johnston SAA

Kola Inglesa (Coca- Corp Lindley SA 0.5 - - -

Cola Co, The)

Others Others 12.5 12.7 12.4 12.4

(12)

Table 17 NBO Company Shares of Off-trade Soft Drinks (RTD): % Volume 2011-2015

% off-trade volume

Company 2011 2012 2013 2014 2015

Corp Lindley SA 46.7 45.4 45.0 45.2 45.0

Ajeper SA 22.4 23.5 23.5 23.8 24.5

Perú SAC

Gloria SA, Grupo 2.6 2.7 2.5 2.6 2.7

SA

Coca-Cola Co, The - 0.0 0.0 0.0 1.8

Laive SA 0.3 0.3 0.3 0.3 0.3

Trifarma SA 0.1 0.1 0.1 0.1 0.1

Watt's Perú SA 0.1 0.1 0.1 0.1 0.1

Perufarma SA 0.1 0.1 0.1 0.1 0.1

Embotelladora Demesa SA 0.1 0.1 - - 0.0

Food Pack SAC 0.0 0.0 0.0 0.0 0.0

Alicorp SAA 3.0 3.3 3.4 3.3 -

Kraft Foods Perú SA 0.6 0.5 0.5 0.5 -

Corporación Tres Montes 2.8 2.9 3.5 0.3 -

Perú SA Productos Extragel 0.1 0.1 0.1 0.1 - Universal SAC Consorcio Bander SA 0.0 0.0 - - - Pepsi-Cola Panamericana 0.1 - - - - Perú SRL

Others 6.5 7.0 7.1 9.9 13.4

Total 100.0 100.0 100.0 100.0 100.0

Table 18 LBN Brand Shares of Off-trade Soft Drinks (RTD): % Volume 2012-2015

% off-trade volume

Cola Co, The)

Co, The)

(13)

Pepsi (PepsiCo Inc) Cia Cervecera Ambev 4.5 4.3 4.3 4.1 Perú SAC

Inca Kola Light Corp Lindley SA 3.1 3.0 3.0 2.9

(Coca-Cola Co, The)

Co, The)

Inc) Perú SAC

Perú SAC

Co, The)

Isaac Kola Embotelladora Don Jorge SA 0.8 0.7 0.7 0.7

Co, The)

(Coca-Cola Co, The)

Fanta Kola Inglesa Corp Lindley SA - 0.5 0.5 0.5

(Coca-Cola Co, The)

Tampico (Houchens Gloria SA, Grupo 0.4 0.4 0.4 0.4

Industries Inc)

Oro (Aje Group) Ajeper SA 0.4 0.3 0.3 0.3

Negrita Alicorp SAA 1.8 1.9 1.8 -

Kanú Alicorp SAA 0.8 0.8 0.8 -

Johnston SAA

San Mateo Unión de Cervecerías 0.5 0.5 0.6 -

Johnston SAA

Clight (Mondelez Kraft Foods Perú SA 0.5 0.5 0.5 -

International Inc)

Yaps Alicorp SAA 0.4 0.4 0.4 -

Kiribá Alicorp SAA 0.3 0.4 0.3 -

Zuko (Tresmontes Corporación Tres Montes 2.9 - - -

Lucchetti SA) Perú SA

Kola Inglesa (Coca- Corp Lindley SA 0.5 - - -

Cola Co, The)

Others Others 12.1 15.7 15.3 18.5

Total Total 100.0 100.0 100.0 100.0

(14)

Table 19 NBO Company Shares of Off-trade Soft Drinks: % Value 2011-2015

% off-trade value rsp

Company 2011 2012 2013 2014 2015

Corp Lindley SA 49.2 47.7 47.8 47.4 46.7

Ajeper SA 20.7 22.1 22.3 22.7 23.3

Perú SAC

Gloria SA, Grupo 2.7 2.9 2.6 2.7 2.8

SA

Coca-Cola Co, The - 0.0 0.0 0.0 1.6

Perufarma SA 1.0 1.0 1.0 1.1 1.1

Alicorp SAA 0.8 0.8 0.7 0.7 0.7

Laive SA 0.5 0.5 0.6 0.5 0.5

Trifarma SA 0.2 0.2 0.2 0.3 0.3

Kraft Foods Perú SA 0.3 0.3 0.3 0.3 0.3

Corporación Tres Montes 0.3 0.3 0.3 0.2 0.2

Perú SA

Watt's Perú SA 0.2 0.2 0.2 0.2 0.2

Food Pack SAC 0.1 0.1 0.1 0.1 0.1

Embotelladora Demesa SA 0.1 0.1 - - 0.0 Productos Extragel 0.0 0.0 0.0 0.0 0.0 Universal SAC Consorcio Bander SA 0.0 0.0 - - - Pepsi-Cola Panamericana 0.1 - - - - Perú SRL

Others 6.8 7.2 7.1 6.9 6.7

Total 100.0 100.0 100.0 100.0 100.0

Table 20 LBN Brand Shares of Off-trade Soft Drinks: % Value 2012-2015

% off-trade value rsp

Cola Co, The)

Co, The)

Kola Real (Aje Group) Ajeper SA 6.0 5.6 5.6 5.4

Inc) Perú SAC

Pepsi (PepsiCo Inc) Cia Cervecera Ambev 4.1 3.8 3.7 3.6

Perú SAC

(15)

(Coca-Cola Co, The)

Co, The)

Perú SAC

Red Bull (Red Bull Perufarma SA 1.0 1.0 1.1 1.1

GmbH)

Co, The)

(Coca-Cola Co, The)

Co, The)

Beberash La Cosecha Peruana SAC 0.6 0.6 0.6 0.7

Free Tea Light (Aje Ajeper SA 0.5 0.6 0.6 0.7

Group)

Sporade Light (Aje Ajeper SA 0.4 0.5 0.5 0.5

Group)

Johnston SAA

Others Others 15.7 15.8 15.4 14.7

Total Total 100.0 100.0 100.0 100.0

Table 21 Distribution of Off-trade Soft Drinks (as sold) by Format and Category: % Volume 2015 % off-trade BW C CON J RTD C RTD T Store-Based Retailing 92.3 100.0 0.0 100.0 100.0 100.0 - Grocery Retailers 92.3 100.0 0.0 100.0 100.0 100.0 -- Modern Grocery 15.5 14.8 0.0 22.1 11.3 11.3 Retailers --- Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0 --- Discounters 0.0 0.0 0.0 0.0 0.0 0.0 --- Forecourt Retailers 0.2 0.2 0.0 0.3 0.0 0.0 --- Hypermarkets 8.6 8.0 0.0 11.9 6.2 6.2 --- Supermarkets 6.7 6.6 0.0 9.8 5.1 5.1 -- Traditional Grocery 76.8 85.2 0.0 77.9 88.7 88.7 Retailers

(16)

--- Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0 specialists --- Independent Small 58.0 72.2 0.0 61.5 71.0 71.0 Grocers --- Other Grocery 18.8 13.0 0.0 16.4 17.7 17.7 Retailers - Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0 - Non-Grocery Specialists 0.0 0.0 0.0 0.0 0.0 0.0 Non-Store Retailing 7.8 0.0 0.0 0.0 0.0 0.0 - Vending 0.0 0.0 0.0 0.0 0.0 0.0 - Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0 - Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0 - Direct Selling 7.8 0.0 0.0 0.0 0.0 0.0 Total 100.0 100.0 0.0 100.0 100.0 100.0 SED ASD Store-Based Retailing 100.0 0.0 - Grocery Retailers 100.0 0.0 -- Modern Grocery 14.9 0.0 Retailers --- Convenience Stores 0.0 0.0 --- Discounters 0.0 0.0 --- Forecourt Retailers 0.0 0.0 --- Hypermarkets 8.3 0.0 --- Supermarkets 6.6 0.0 -- Traditional Grocery 85.1 0.0 Retailers --- Food/drink/tobacco 0.0 0.0 specialists --- Independent Small 61.8 0.0 Grocers --- Other Grocery 23.3 0.0 Retailers - Mixed Retailers 0.0 0.0 - Non-Grocery Specialists 0.0 0.0 Non-Store Retailing 0.0 0.0 - Vending 0.0 0.0 - Homeshopping 0.0 0.0 - Internet Retailing 0.0 0.0 - Direct Selling 0.0 0.0 Total 100.0 0.0

Key: BW = bottled water; C = carbonates; CON = concentrates; J = juice; RTD C = RTD coffee; RTD T = RTD tea; SED = sports and energy drinks; ASD = Asian speciality drinks

Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2015-2020 million litres 2015 2016 2017 2018 2019 2020 Off-trade 2,616.7 2,728.6 2,823.2 2,929.2 3,041.4 3,163.8 On-trade 373.1 384.0 394.1 405.1 416.8 429.0 Total 2,989.8 3,112.6 3,217.4 3,334.3 3,458.1 3,592.8

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

(17)

Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2015-2020 % volume growth 2015/16 2015-20 CAGR 2015/20 TOTAL Off-trade 4.3 3.9 20.9 On-trade 2.9 2.8 15.0 Total 4.1 3.7 20.2

Table 24 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2015-2020 PEN million 2015 2016 2017 2018 2019 2020 Off-trade 6,721.1 7,050.3 7,343.4 7,666.8 8,316.6 8,691.2 On-trade 3,337.2 3,452.9 3,564.2 3,686.2 3,817.8 3,956.8 Total 10,058.3 10,503.2 10,907.5 11,353.1 12,134.4 12,648.0

Table 25 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2015-2020

2015/16 2015-20 CAGR 2015/20 TOTAL

Off-trade 4.9 5.3 29.3

On-trade 3.5 3.5 18.6

Total 4.4 4.7 25.7

Table 26 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2015-2020 million litres 2015 2016 2017 2018 2019 2020 Bottled Water 598.8 657.5 715.1 774.5 836.5 901.7 Carbonates 1,443.7 1,461.7 1,466.1 1,478.8 1,498.2 1,523.4 Concentrates - - - - Juice 353.4 363.2 369.5 376.5 384.3 392.9 RTD Coffee 0.0 0.0 0.0 0.0 0.0 0.0 RTD Tea 68.1 78.9 90.6 102.6 114.9 127.4

(18)

Table 27 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2015-2020 % volume growth 2015/16 2015-20 CAGR 2015/20 Total Bottled Water 9.8 8.5 50.6 Carbonates 1.2 1.1 5.5 Concentrates - - - Juice 2.8 2.1 11.2 RTD Coffee 5.5 4.5 24.7 RTD Tea 16.0 13.4 87.2

Table 28 Forecast Off-trade Sales of Soft Drinks by Category: Value 2015-2020

PEN million 2015 2016 2017 2018 2019 2020 Bottled Water 1,139.8 1,252.0 1,362.4 1,476.6 1,595.8 1,721.3 Carbonates 3,352.1 3,399.8 3,417.6 3,455.3 3,508.8 3,576.0 Concentrates 80.5 80.7 80.6 80.7 81.2 81.9 Juice 903.5 930.9 948.8 969.8 994.0 1,021.4 RTD Coffee 0.4 0.4 0.4 0.4 0.4 0.5 RTD Tea 366.8 425.9 489.7 555.3 622.5 691.3

Sports and Energy Drinks 878.0 960.7 1,043.9 1,128.7 1,513.8 1,598.9

Soft Drinks 6,721.1 7,050.3 7,343.4 7,666.8 8,316.6 8,691.2

Table 29 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL Bottled Water 9.8 8.6 51.0 Carbonates 1.4 1.3 6.7 Concentrates 0.3 0.3 1.7 Juice 3.0 2.5 13.0 RTD Coffee 6.1 5.4 29.9 RTD Tea 16.1 13.5 88.4

(19)

Table 30 Forecast Total Sales of Soft Drinks by Fountain On-trade: Volume 2015-2020

million litres

2015 2016 2017 2018 2019 2020

Total Fountain On-trade 16.2 17.2 18.1 19.1 20.1 21.1

Table 31 Forecast Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2015-2020

% fountain volume growth

2015/16 2015-20 CAGR 2015/20 TOTAL

Total Fountain On-trade 5.7 5.3 29.7

APPENDIX

Fountain Sales in Peru

Trends

 Total fountain on-trade volume grew by 6% in 2015, a similar rate to that seen in 2014, and

sales amounted to 16.2 million litres. Fountain sales in the country are only available through on-trade sales, and carbonates is the only category where fountain beverages are available.

 Growth in fountain sales is driven by growth of the consumer foodservice industry in the

country. Even the sales of carbonates are growing at a slower pace on the off-trade channel. The on-trade channel is more dynamic, as growth of the purchasing power of Peruvians allows them to eat out more at lunch or dinner time.

 The leading soft drink companies in Peru are Corp Lindley with worldwide brands such as

Coca Cola, Sprite and Fanta but also the local leader brand, Inca Kola. However, other franchises have joined with PepsiCo to dispense the brands Pepsi, 7-Up and Concordia.

 Growth of fountain drinks is expected to continue over the forecast period, driven by the

increase of Peruvians’ purchasing power and their preference for eating out. Fast food chains are the main distribution point for fountain drinks and they are expected to grow, mostly in provinces outside Lima through mall openings. It is also expected that consumers will demand, even at fast food chains, healthier beverage choices and therefore there should be an increase in demand for low-calorie carbonates and the addition of more options such as RTD tea or water.

DEFINITIONS

(20)

 Chicha morada: Drink made from the Peruvian purple corn, mixed with pineapple and spices

 Emoliente: Local beverage prepared with toasted barley, flax seeds and lime. Sometimes it

can also include other traditional medicinal herbs such as horsetail, boldo, stonebreaker, cat’s claw and aloe vera.

 Pisco: A Peruvian grape-based white spirit

SOURCES

Sources used during the research included the following:

Summary 1 Research Sources

Official Sources Conasev

Instituto Nacional de Estadística e Informática MINAG

Produce.gob.pe

Radio Programas del Peru

Trade Press América Economía

Andina Avance Económico Correo El Comercio El Peruano Expreso Gestion La República Semana Económica